Telia Company AB · OMXSTO:TELIA
Telia Company AB — TeliaSonera — Q1 2010 Earnings Presentation
18 slides from Telia Company AB's earnings presentation, April 2010
Slide 1: TeliaSonera January – March 2010
TeliaSonera January – March 2010 Lars Nyberg President and CEO 1 Returning to organic revenue growth • Net sales SEK 26,090 million (27,135) • Net sales in local currencies* +2.5 percent • EBITDA** SEK 8,963 million (8,821) • EBITDA** margin improved to 34.4 percent (32.5) * Net sales in local curre
Slide 2: Returning to organic revenue growth; Continued strong growth in Mobility Sweden
Returning to organic revenue growth TeliaSonera Group 15% 13% 10% 8% 5% 3% 0% -3% -5% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Reported growth Organic growth* * Net sales in local currencies and excluding acquisitions 3 Continued strong growth in Mobility Sweden Net sales, SEK billion 4
Slide 3: Improved trends in the Nordic countries; Strong margin trend in the Baltics
Improved trends in the Nordic countries Organic revenue growth, local currencies* 15% 10% 5% 0% -5% -10% -15% -20% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Sweden Finland Denmark Norway * Mobility Services 5 Continued strong margin trend in the Baltics Organic revenue growth, local curr
Slide 4: Double-digit revenue growth in Eurasia; Re-branding in Eurasia continues
Double-digit revenue growth in Eurasia 60% 50% 40% 30% 20% 10% 0% -10% an n an va n l ia ia a ija ta s rg ep st do ist ra is ba eo kh N jik ek ol Eu er za G M Ta zb Az Ka U • Growth in Net sales of 12.7 percent, in local currencies and excluding acquisitions, was twice as high as in the fourth quart
Slide 5: Low CAPEX-to-sales in the first quarter; Outlook for 2010 (unchanged)
Low CAPEX-to-sales in the first quarter CAPEX-to-sales, Q1 2010 • Mobility Services 16% – Timing between quarters 14% – 4G investments mainly in Q2/Q3 2010 12% • Broadband Services 10% – Weather conditions 8% – Timing between quarters 6% • Eurasia 4% – Confirmation of revenue growth 2% – Timing betw
Slide 6: Q1 2010 in brief
TeliaSonera January – March 2010 Per-Arne Blomquist Executive Vice President and CFO 11 Q1 2010 in brief • Net sales SEK 26,090 million (27,135) – Decrease -3.9% – Local organic +2.5% – FX effect -6.7% – Acquisitions +0.3% • EBITDA* SEK 8,963 million (8,821) – Increase +1.6% – Local organic excl. ac
Slide 7: Business area – Mobility Services; Broadband Services
Business area – Mobility Services Net sales and EBITDA* margin CAPEX and CAPEX-to-sales 15,000 +5% LC 32% 1,000 10% 12,500 800 8% 30% 10,000 SEK million SEK million 600 6% 7,500 28% 400 4% 5,000 26% 200 2% 2,500 0 24% 0 0% Q1 09 Q1 10 Q1 09 Q1 10 Net sales, reported currency EBITDA* margin CAPEX CAP
Slide 8: Business area – Eurasia
Business area – Eurasia Net sales and EBITDA* margin CAPEX and CAPEX-to-sales 5,000 54% 1,250 35% +13% LC 30% 4,000 1,000 52% 25% SEK million SEK million 3,000 750 20% 50% 2,000 500 15% 10% 48% 1,000 250 5% 0 46% 0 0% Q1 09 Q1 10 Q1 09 Q1 10 Net sales, reported currency EBITDA* margin CAPEX CAPEX-to
Slide 9: Addressable cost base
Addressable cost base SEK million SEK million 10,000 -3% 5,000 -8% 8,000 4,000 -2% -16% 6,000 3,000 +12% +36% 4,000 -9% 2,000 -13% +7% +6% 2,000 1,000 -9% -11% 0 0 Q1 09 Q1 10 Q1 09 Q1 10 Personnel Marketing IT Rents Other Personnel Marketing IT Rents Other • TeliaSonera Group • Sweden and Finland I
Slide 10: Lower income from associated companies
Lower income from associated companies SEK billion 2.3 2.0 -18% 1.8 1.5 1.3 1.0 0.8 0.5 0.3 0.0 Q1 09 Q1 10 Russia Turkey Other • Turkey: SEK 429 million (741) or -42 percent – Negative impact of goodwill impairment charges, write-down of non-current assets, and legal payments and provisions • Russi
Slide 11: Interest rate
Interest rate SEK million 80,000 6.0% 70,000 5.0% 60,000 4.0% 50,000 40,000 3.0% 30,000 2.0% 20,000 1.0% 10,000 0 0.0% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Gross debt Average interest rate • Average interest rate on the debt approx. 3 percent, unchanged from Q4 2009 21 January– Marc
Slide 12: Income taxes; Statement of cash flows
Income taxes SEK million SEK million 7,000 30% 1,800 100% 6,000 25% 1,500 80% 5,000 20% 1,200 4,000 60% 15% 900 3,000 40% 10% 600 2,000 20% 1,000 5% 300 0 0% 0 0% Q1 09 Q1 10 Q1 09 Q1 10 Income after financial items Reported income taxes in the P&L Effective tax rate (%) Tax paid as % of reported in
Slide 13: Solid financial position; Debt maturity schedule
Solid financial position SEK million 60,000 2.0 50,000 1.5 40,000 30,000 1.0 20,000 0.5 10,000 0 0.0 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Net debt Net debt to EBITDA* rolling 4 quarters * Excluding non-recurring items 25 Debt maturity schedule SEK million Debt Maturing next 12 month
Slide 14: Strong financial key ratios; Q&A
Strong financial key ratios Mar 31, 2010 Mar 31, 2009 Dec 31, 2009 Return on equity* 15.4% 17.0% 15.2% Return on capital employed* 15.6% 16.9% 15.5% Equity/assets ratio 50.0% 50.3% 49.1% Net debt/equity ratio 34.8% 32.7% 34.9% * Rolling 12 months One of the best rated Telecom Operators in Europe 27
Slide 15: Organic revenue growth; Net sales by business area
Organic revenue growth Revenue growth (%) Reported of which of which of which Q1 2010 growth currency acquisitions organic Mobility Services -0.3 -5.2 - 4.9 Broadband Services -7.5 -4.2 0.8 -4.1 Eurasia -7.8 -20.5 - 12.7 The Group -3.9 -6.7 0.3 2.5 29 Net sales - Group and by Business area Jan – Mar
Slide 16: EBITDA by business area; Statement of cash flows
EBITDA* - Group and by Business area EBITDA* Jan – Mar Jan – Mar Change SEK million 2010 2009 % Mobility Services 3,561 3,397 5 Broadband Services 3,522 3,504 1 Eurasia 1,735 1,878 -8 Other operations 148 53 179 The Group 8,963 8,821 2 Jan – Mar Jan – Mar Change EBITDA* margin, % 2010 2009 % point M
Slide 17: Liquidity position; credit ratings
Liquidity position TeliaSonera Group Cash and cash equivalents, less blocked funds approx. SEK 13.2 billion Committed bank lines Maturity Size Amount undrawn Syndicated revolving credit facility Dec 2011 EUR 1 billion EUR 1 billion Bilateral credit facility Apr 2013 SEK 1.4 billion SEK 1.4 billion M
Slide 18: Forward-looking statements
Forward-looking statements Statements made in this document relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and